I am new to contracting and would like some advice.

My situation is:

  • I am a UK citizen and my home is in the UK.
  • I am working in London for a UK based company.
  • I currently work full time as a Software Developer.
  • With the same company, I am planning on moving from permanent to contracting as I hope to gradually cut my days shorter from 5 days, to 4 then to 3.
  • I will be working remotely in Portugal as my partner is there.
  • I hope to become a resident and make my home there.

Now my questions are:

  • What steps should I take to make this happen?
  • What things should I consider? What should I be aware of? Is this even possible to do? Is it hard to do? - I keep running into unknown things. I thought working remotely abroad would be simple but there's a lot of hurdles to get through. For example, I just found out I need to pay taxes in two countries and to see whether my employer will and can pay taxes to abroad. So this is what I'm asking if there is anything I should be aware of?
  • Taxes and tax returns, documentation where and how in portugal
  • What does my employer need from me and the umbrella company to make this work?
  • How does my company file taxes to Portugal? Is this hard for them to do?
  • Hi Johnathan, I am considering the same scenario: moving to Portugal but keep working to a UK company. From what I have gathered, I would be taxed here in the UK and also taxed in Portugal, but in Portugal, the taxation would not be of the full amount earned. Portugal and the UK have some kind of treaty that allows for this to happen. So, for the company it would be transparent, they would still pay my salary as they do now. They would only need to tell HMRC that I am a non resident worker. I would still be a worker of the UK company and in Portugal, some taxation would be needed – chiapa Jul 5 '18 at 21:23
  • Not sure how much though, that is my only doubt. I can't find info on it. I know your question is 3 years old now but, what happened to you? Did you actually go to Portugal? Have you got any more insight on this? Thanks – chiapa Jul 5 '18 at 21:28
  • 1
    Hey, I gave up on the contracting route and decided to quit and pack my bags for Portugal in August. I decided this in April. However, luckily, coming from a Computer Science background with 4 years experience I was able to find a good developer job in a start up in Lisbon, which starts in August. The working remotely route in a different country got very complicated very fast. It was such a hassle so I gave up on it. It depends on your priorities. I just wanted to get out of London and into a sunny country. – Johnathan Au Jul 6 '18 at 9:52
  • Glad you got what you wanted. It all depends on your needs. At the moment, I have plenty of experience and skill to easily find a job in Portugal, in software development. The problem is, my wife won't be able to find anything that she will enjoy doing and my salary there won't allow her to start her own business or something, or even stay at home. We were there before coming to the UK and know how the market is like. I will keep trying to convince my company to offer me that possibility otherwise I can't see us going back to live in difficulties. The sun does not pay my bills, unfortunately. – chiapa Jul 16 '18 at 8:57
  • @JohnathanAu may I ask why it "got very complicated very fast" ? I am considering the same move now and my employer is mainly worried they will have to start paying taxes in Portugal for their incomes if they hire me there, even if I switch to be an external contractor to the company while in Portugal – Michael May 14 '19 at 20:12

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